The following date relates to Segoyard Corporation for the year 2022:

Cost Replacement Cost

Equipment 800,000 1,100,000
Residual Va 70,000 25,000
Life in years 10
Age of the 3
Assume that Segoyard uses the double declining balance method of depreciation for its equipment.

Cost Replacement Cost

Machinery 800,000.00 1,100,000.00
Residual Value 70,000.00 25,000.00
Life in years 10.00
Age of equipment 3.00 n

0.10 0.20
Beg at Cost 800,000.00 Beg Replacement Cost
2020 160,000.00 640,000.00 2,020.00
2021 128,000.00 512,000.00 2,021.00
2022 102,400.00 409,600.00 2,022.00

Sound Value 563,200.00

Carrying value at Cost 409,600.00
Revaluation Surplus 153,600.00 #1

New Carrying Value 563,200.00

Less: Residual Value 25,000.00
Depreciable cost 538,200.00
Remaining life 5.00
Annual Depreciation 107,640.00 #2
Beg Replacement Cost 1,100,000.00
220,000.00 880,000.00
176,000.00 704,000.00
140,800.00 563,200.00
Tasty Corp. purchased a unit of production machinery on January 1, 2022 for a total cost of P4,000,000. Tasty estimated that it will be able t
produce 1,000,000 units of the company's products before being disposed. During the first year of the machinery's use, it was able to produce
120,000 units, all of which were sold the next year. At the end of 2023, when the total number of units produced by the machinery since 202
was 250,000, Tasty's statement of financial position shows that the machinery's carrying amount was P3,005,000. Total number of units sold
by the company during 2023 was 220,000.

Cost 4,000,000.00 Beginning Units 1,000,000.00

Carrying Value 2023 3,005,000.00 Produced units 2022 to 2023 250,000.00
Accumulated Depreciation 995,000.00 Remaining Life 750,000.00
Produced Units 250,000.00
Depreciation Rate 3.98
Total production units 1,000,000.00
Depreciable cost 3,980,000.00
Less: Cost 4,000,000.00
Residual Value 20,000.00

Depreciation rate 3.98

Total units produced 120,000.00
Depreciation for 2022 477,600.00
 . Tasty estimated that it will be able to
machinery's use, it was able to produce
produced by the machinery since 2022
3,005,000. Total number of units sold
On January 1, 2022, Uptown Company purchased a unit of machinery for 2,250,000. The company accounts for its machineries using the
revaluation model. The machine is depreciated using the sum-of-years' digits with no residual value. The estimated useful life is 5 years.
On January 1, 2024, the entity realized a revaluation surplus of 656,250.

Cost Increase Revaluation

Machinery 2,250,000.00
Depreciation - 2022 to 202 1,350,000.00
Carrying Value 900,000.00 656,250.00 1,556,250.00
Depreciation - 2024 778,125.00
Carrying Value 778,125.00
Depreciation - 2025 518,750.00
Carrying Value 259,375.00

Original Cost Depreciable Cost Fraction Depreciation Accumulated Depreciation

2022 2,250,000.00 5.00 15.00 750,000.00 750,000.00
2023 2,250,000.00 4.00 15.00 600,000.00 1,350,000.00
2024 2,250,000.00 3.00 15.00 450,000.00 1,800,000.00
2025 2,250,000.00 2.00 15.00 300,000.00 2,100,000.00
2026 2,250,000.00 1.00 15.00 150,000.00 2,250,000.00

Revalued Asset Depreciable Cost Fraction Depreciation Accumulated Depreciation

2024 1,556,250.00 3.00 6.00 778,125.00 778,125.00
2025 1,556,250.00 2.00 6.00 518,750.00 1,296,875.00
2026 1,556,250.00 1.00 6.00 259,375.00 1,556,250.00

Revaluation Surplus Surplus Amount Fraction Piecemeal Realization

2024 656,250.00 3.00 6.00 328,125.00
2025 656,250.00 2.00 6.00 218,750.00
2026 656,250.00 1.00 6.00 109,375.00
its machineries using the
ed useful life is 5 years.

ulated Depreciation

ulated Depreciation
Thunderstruck Corporation has one department that performs machining operations on parts that are sold to contractors. A group of
machines have an aggregate book value at the latest balance sheet date (December 31, 2021) totaling 1,230,000. Upon analysis, the
following facts about future expected cash inflows and outflows become apparent based on the diminishing productivity expected of
the machinery as it ages, and the increasing costs that will be incurred to generate from the machines:

Year Revenues Costs, excluding depreciation

2022750,000 280,000
2023800,000 420,000
2024650,000 550,000
2025200,000 150,000
Total 2,400,0001,400,000
The company had the machines appraised with an engineer to which valued such at 845,000. In addition, the company discounts its
future cash inflows and outflows at an effective rate of 5%.

Computation of value in use Inflows Outflows Net PV Factor

2022 750,000.00 280,000.00 470,000.00 0.95 447,619.05
2023 800,000.00 420,000.00 380,000.00 0.91 344,671.20
2024 650,000.00 550,000.00 100,000.00 0.86 86,383.76
2025 200,000.00 150,000.00 50,000.00 0.82 41,135.12
Value in Use 2,400,000.00 1,400,000.00 919,809.13 Higher
FV-CTS 845,000.00

Carrying value as of 12/31/2021 1,230,000.00

Value in use 919,809.13
Impairment Loss 310,190.87
ontractors. A group of
00. Upon analysis, the
roductivity expected of

company discounts its

ABBA Music Company reported an impairment loss of P500,000 in its income statement for the year ended December 31, 2022. The loss
was related to property acquired on January 1, 2021, with a cost of 2,500,000, useful life of 10 years and no residual value. On December 31
2022 balance sheet, ABBA reported these property assets at 1,500,00 which is the fair value on such date. On December 31, 2023, ABBA
determined that the fair value of its impaired property assets had increased to 1,875,000. The straight line depreciation is recorded for the
impaired property assets.

Cost Revaluation Impairment

Property 2,500,000.00 1,875,000.00
Depreciation - 2021 250,000.00 187,500.00
CV 12/31/21 2,250,000.00 1,687,500.00
Depreciation - 2022 250,000.00 187,500.00
CV 12/31/22 2,000,000.00 0.80 1,500,000.00 (500,000.00)
Depreciation - 2023 250,000.00 187,500.00
CV 12/31/23 1,750,000.00 1,312,500.00
Recoverable amount:
CV had there been no impairment 1,750,000.00 1,750,000.00 LOWER
Fair Value 1,875,000.00
Gain on recovery of impairment 437,500.00
ended December 31, 2022. The loss
nd no residual value. On December 31,
ate. On December 31, 2023, ABBA
ine depreciation is recorded for the
RS Turbo Company issued 20,000 P50 par ordinary shares for a piece of equipment on January 1, 2022. The shares had a fair value of P80. T
the same date was 1,500,000. The equipment has an estimated useful life of 15 years and depreciated using the sum-of-years' digit method. T
2013 was 175,000.

On January 1, 2027, a major component of the equipment was replaced at a total cost of 440,000. The major component was estimated to hav
part of the residual value was allocated to this part)

Cost 1,500,000.00
Depreciable cost (1,400,000.00)
Residual value 100,000.00

Total depreciable cost 1,400,000.00

Orig. cost of replaced c (350,000.00)
Remaining depreciable co 1,050,000.00
Depreciation rate 10/120 87,500.00

Cost of replacement 440,000.00

Depreciation rate 10/55 80,000.00
Total depreciation 167,500.00
 2. The shares had a fair value of P80. The fair value of the equipment on
using the sum-of-years' digit method. The equipment's depreciation for

major component was estimated to have an original cost of 350,000 (no

On January 1, 2022, an entity received 6,000,000 from the local government to compensate for costs to be incurred in planting 1000 trees ev
years.

On January 1, 2023, the entire amount of the government grant became payable due to the company not planting a single tree within the prev
conditions.

Determine the amount to be recorded as the loss on repayment of grant

Cash Paid 6,000,000.00

Deferred grant income 4,800,000.00
Loss 1,200,000.00
e for costs to be incurred in planting 1000 trees every year in a reforestation initiative over a period of 5

company not planting a single tree within the previous year. This is a clear non-compliance of the grant
Antelope Inc. acquired a piece of equipment at the beginning of 2022 for an installment price of 12,500,000 payable in 10 equal annual
installments. The cash price of the item would have been 80% of the total installment price of the item. The company expects tot use the
equipment for 20 years, with a residual value of 200,000. Antelope decided to depreciate the equipment using the sum-of-years' digit method

At the beginning of 2027, Antelope realized that the remaining useful life of the asset was only 10 years. Also, the depreciation method was
changed to straight line method with no residual value.

Determine the asset's carrying amount at the end of 2029

Cash Price 10,000,000.00

Reisdual value 200,000.00
Depreciable cost 9,800,000.00

Year Depreciable Cost Fraction Depex AD

2022 9,800,000.00 20.00 210 933,333.33 933,333.33

2023 9,800,000.00 19.00 210 886,666.67 1,820,000.00
2024 9,800,000.00 18.00 210 840,000.00 2,660,000.00
2025 9,800,000.00 17.00 210 793,333.33 3,453,333.33
2026 9,800,000.00 16.00 210 746,666.67 4,200,000.00
2027 9,800,000.00 15.00 210 700,000.00
2028 9,800,000.00 14.00 210 653,333.33
2029 9,800,000.00 13.00 210 606,666.67
2030 9,800,000.00 12.00 210 560,000.00

Carrying value 1/1/2027 5,800,000.00

Depex 2027 580,000.00
Depex 2028 580,000.00
Depex 2029 580,000.00 1,740,000.00
Carrying value 12/31/2029 4,060,000.00
0,000 payable in 10 equal annual
The company expects tot use the
t using the sum-of-years' digit method.

s. Also, the depreciation method was

CV
10,000,000.00
9,066,666.67
8,180,000.00
7,340,000.00
6,546,666.67
5,800,000.00
The following information pertains to Horton Company's list of property, plant, and equipment as of December 31, 2022.

PPE A PPE B PPE C PPE D

Cost 250,000 300,000 350,000 400,000
Year purchased 2016 2017 2018 2019
Salvage value 30,000 20,000 50,000 10,000
Useful Life 10 years 20,000 hrs 15 years 10 years
Depreciation SYD Working Hours Straight Line Double declining
A/D until Dec 31, 2021 180,000 154,000 100,000 195,200
Additional information:

a. All the items above were purchased at the beginning of the year
b. On July 1, 2022, PPE A was sold to Havana Co. for 80,000
c. On December 31, 2022, it was determined that PPE B had been used for 2,100 hours during 2022.
d. On December 31, 2022, before computing depreciation expense on PPE C, the management of Horton decided the useful lif
from January 1, 2022 onwards was only 8 years

PPE A PPE B PPE C PPE D

Cost ### ### ### ###
Year purchased 2,016.00 2,017.00 2,018.00 2,019.00
Salvage value 30,000.00 20,000.00 50,000.00 10,000.00
Useful Life 10 years 20,000 hrs 15 years 10 years
Depreciation SYD Working HouStraight Lin Double declining
A/D until Dec 31, 2021 ### ### ### ###

A B C D
Cost ### ### ### ###
AD ### ### ### ###
CV 12/31/2021 70,000.00 ### ### ###
Depex 2022 - up to July 8,000.00
CV/7/1/2022 62,000.00
Selling Price 80,000.00
Gain on sale 18,000.00

Depreciable cost of PPE B ###

Useful life, in hours 20,000.00
Depreciation per hour 14.00
Hours used in 2022 2,100.00
Depreciation of PPE B 29,400.00

Carrying amount of PPE D ###

DDB rate 0.20
Depreciation of PPE D 40,960.00

PPE A 1/1 to 6/30 - 2022 8,000.00

PPE B - 2022 29,400.00
PPE C CV 12/31/21 ###
RUL 8.00 31,250.00
PPE D 40,960.00
Total Depreciation ###
s of December 31, 2022.

2022.
nt of Horton decided the useful life remaining
In 2022, an entity bought a parcel of land at 1,560,000 and adopts the revaluation model for subsequent measurement. Fair value at year end

2022 2,500,000.00
2023 1,418,000.00
2024 1,962,200.00

Determine the amount of revaluation surplus to be reported in the 2024 Other Comprehensive Income.
Determine the amount of Impairment loss for 2023

Cost Revaluation Change RS IL

2022 1,560,000.00 2,500,000.00 940,000.00 940,000.00
2023 2,500,000.00 1,418,000.00 (1,082,000.00) (940,000.00) (142,000.00)
2024 1,418,000.00 1,962,200.00 544,200.00 402,200.00 142,000.00
rement. Fair value at year end follows: